• any other transactions. Once processed, payments are final and irrevocable.
• Thus the central services division consists of several groups that contain efficient and intelligent people; they provide support functions to the bank.

3.4 Pre-Reform Period

UK Banks, prior to the advent of Bank of England Act 1998. Which introduced new structure of activities with the object of achieving monetary stability and financial stability, did not witness any big crises as of United States, European countries and others like Japan. Various crises such as the great depression of 1930, Bubble scam of housing market in 1988-89, Bond and Equity market crash in 1987, global credit crunch in 1982 and so on rocked the whole world, but Great Britain was not affected much during those periods. This is because of consistent traditional practices adopted by the UK Bank. In the mid eighties and before, the structure of UK Banking activities were of two fold one is general function and other one is economic function.

General Functions:

• The general functions of the banks were
• Collections of deposits and maintaining various accounts of the customers
• Borrowing money by issuing bank notes and bonds
• Lending money and giving advances to customers on current accounts
• Investing in marketable debt securities
• These general activities helped many businesses in UK flourish and small businesses were established and developed with the help of the bank loan.

Economic function:

• The general functions were carried on in micro level, but economic functions helped the country in macro level. Such economic functions were
• Issue of Bank notes
• Acts as collection and paying agent
• Inter banks clearing
• Borrowing in short and lend in long.
• In this scenario, the UK banks experienced only internal crises. Such internal crises were rectified by taking suitable measures and thereby ensured the smooth functioning of the economy as whole.
• UK Banks were cautious in their banking business. They used to have very sound, profitable business models. They collected savings from customers and then lent it out. They were very careful to whom they lent money and were scrupulous in checking their incomes. Because of this UK Banks did not suffer major financial crises like that of its counterpart US and other countries. Many crises affected the globe but not the Great Britain as the country was strong in their policy of having monetary and financial stability.
• Prior to the 1998, there were two types of crises that Great Britain f